BILL NUMBER: AB 1290	CHAPTERED  09/21/99

	CHAPTER   448
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 21, 1999
	PASSED THE ASSEMBLY   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 25, 1999
	AMENDED IN SENATE   AUGUST 23, 1999

INTRODUCED BY   Assembly Member Davis

                        FEBRUARY 26, 1999

   An act to amend Section 1793.22 of the Civil Code, relating to
warranties.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1290, Davis.  Warranties:  motor vehicle manufacturers.
   Under the existing Tanner Consumer Protection Act, it is presumed
that a reasonable number of attempts have been made to conform a new
motor vehicle to the applicable express warranties if within one year
from delivery to the buyer or 12,000 miles on the odometer of the
vehicle, whichever occurs first, either (1) the same nonconformity,
as defined, has been subject to repair 4 or more times by the
manufacturer or its agents and the buyer has at least once provided a
specified notice to the manufacturer or (2) the vehicle is out of
service by reason of repair of nonconformities by the manufacturer or
its agents for a prescribed period.
   This bill would extend the applicability of the presumption to
when either (1) or (2) occurs within 18 months from delivery to the
buyer or 18,000 miles on the odometer, whichever occurs first.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1793.22 of the Civil Code is amended to read:
   1793.22.  (a) This section shall be known and may be cited as the
Tanner Consumer Protection Act.
   (b) It shall be presumed that a reasonable number of attempts have
been made to conform a new motor vehicle to the applicable express
warranties if, within 18 months from delivery to the buyer or 18,000
miles on the odometer of the vehicle, whichever occurs first, either
(1) the same nonconformity has been subject to repair four or more
times by the manufacturer or its agents and the buyer has at least
once directly notified the manufacturer of the need for the repair of
the nonconformity or (2) the vehicle is out of service by reason of
repair of nonconformities by the manufacturer or its agents for a
cumulative total of more than 30 calendar days since delivery of the
vehicle to the buyer.  The 30-day limit shall be extended only if
repairs cannot be performed due to conditions beyond the control of
the manufacturer or its agents.  The buyer shall be required to
directly notify the manufacturer pursuant to paragraph (1) only if
the manufacturer has clearly and conspicuously disclosed to the
buyer, with the warranty or the owner's manual, the provisions of
this section and that of subdivision (d) of Section 1793.2, including
the requirement that the buyer must notify the manufacturer directly
pursuant to paragraph (1).  This presumption shall be a rebuttable
presumption affecting the burden of proof, and it may be asserted by
the buyer in any civil action, including an action in small claims
court, or other formal or informal proceeding.
   (c) If a qualified third-party dispute resolution process exists,
and the buyer receives timely notification in writing of the
availability of that qualified third-party dispute resolution process
with a description of its operation and effect, the presumption in
subdivision (b) may not be asserted by the buyer until after the
buyer has initially resorted to the qualified third-party dispute
resolution process as required in subdivision (d).  Notification of
the availability of the qualified third-party dispute resolution
process is not timely if the buyer suffers any prejudice resulting
from any delay in giving the notification.  If a qualified
third-party dispute resolution process does not exist, or if the
buyer is dissatisfied with that third-party decision, or if the
manufacturer or its agent neglects to promptly fulfill the terms of
the qualified third-party dispute resolution process decision after
the decision is accepted by the buyer, the buyer may assert the
presumption provided in subdivision (b) in an action to enforce the
buyer's rights under subdivision (d) of Section 1793.2.  The findings
and decision of a qualified third-party dispute resolution process
shall be admissible in evidence in the action without further
foundation.  Any period of limitation of actions under any federal or
California laws with respect to any person shall be extended for a
period equal to the number of days between the date a complaint is
filed with a third-party dispute resolution process and the date of
its decision or the date before which the manufacturer or its agent
is required by the decision to fulfill its terms if the decision is
accepted by the buyer, whichever occurs later.
   (d) A qualified third-party dispute resolution process shall be
one that does all of the following:
   (1) Complies with the minimum requirements of the Federal Trade
Commission for informal dispute settlement procedures as set forth in
Part 703 of Title 16 of the Code of Federal Regulations, as those
regulations read on January 1, 1987.
   (2) Renders decisions which are binding on the manufacturer if the
buyer elects to accept the decision.
   (3) Prescribes a reasonable time, not to exceed 30 days after the
decision is accepted by the buyer, within which the manufacturer or
its agent must fulfill the terms of its decisions.
   (4) Provides arbitrators who are assigned to decide disputes with
copies of, and instruction in, the provisions of the Federal Trade
Commission's regulations in Part 703 of Title 16 of the Code of
Federal Regulations as those regulations read on January 1, 1987,
Division 2 (commencing with Section 2101) of the Commercial Code, and
this chapter.
   (5) Requires the manufacturer, when the process orders, under the
terms of this chapter, either that the nonconforming motor vehicle be
replaced if the buyer consents to this remedy or that restitution be
made to the buyer, to replace the motor vehicle or make restitution
in accordance with paragraph (2) of subdivision (d) of Section
1793.2.
   (6) Provides, at the request of the arbitrator or a majority of
the arbitration panel, for an inspection and written report on the
condition of a nonconforming motor vehicle, at no cost to the buyer,
by an automobile expert who is independent of the manufacturer.
   (7) Takes into account, in rendering decisions, all legal and
equitable factors, including, but not limited to, the written
warranty, the rights and remedies conferred in regulations of the
Federal Trade Commission contained in Part 703 of Title 16 of the
Code of Federal Regulations as those regulations read on January 1,
1987, Division 2 (commencing with Section 2101) of the Commercial
Code, this chapter, and any other equitable considerations
appropriate in the circumstances.  Nothing in this chapter requires
that, to be certified as a qualified third-party dispute resolution
process pursuant to this section, decisions of the process must
consider or provide remedies in the form of awards of punitive
damages or multiple damages, under subdivision (c) of Section 1794,
or of attorneys' fees under subdivision (d) of Section 1794, or of
consequential damages other than as provided in subdivisions (a) and
(b) of Section 1794, including, but not limited to, reasonable
repair, towing, and rental car costs actually incurred by the buyer.

   (8) Requires that no arbitrator deciding a dispute may be a party
to the dispute and that no other person, including an employee,
agent, or dealer for the manufacturer, may be allowed to participate
substantively in the merits of any dispute with the arbitrator unless
the buyer is allowed to participate also.  Nothing in this
subdivision prohibits any member of an arbitration board from
deciding a dispute.
   (9) Obtains and maintains certification by the Department of
Consumer Affairs pursuant to Chapter 9 (commencing with Section 472)
of Division 1 of the Business and Professions Code.
   (e) For the purposes of subdivision (d) of Section 1793.2 and this
section, the following terms have the following meanings:
   (1) "Nonconformity" means a nonconformity which substantially
impairs the use, value, or safety of the new motor vehicle to the
buyer or lessee.
   (2) "New motor vehicle" means a new motor vehicle that is used or
bought for use primarily for personal, family, or household purposes.
  "New motor vehicle" also means a new motor vehicle that is bought
or used for business and personal, family, or household purposes by a
person, including a partnership, limited liability company,
corporation, association, or any other legal entity, to which not
more than five motor vehicles are registered in this state.  "New
motor vehicle" includes the chassis, chassis cab, and that portion of
a motor home devoted to its propulsion, but does not include any
portion designed, used, or maintained primarily for human habitation,
a dealer-owned vehicle and a "demonstrator" or other motor vehicle
sold with a manufacturer's new car warranty but does not include a
motorcycle or a motor vehicle which is not registered under the
Vehicle Code because it is to be operated or used exclusively off the
highways.  A demonstrator is a vehicle assigned by a dealer for the
purpose of demonstrating qualities and characteristics common to
vehicles of the same or similar model and type.
   (3) "Motor home" means a vehicular unit built on, or permanently
attached to, a self-propelled motor vehicle chassis, chassis cab, or
van, which becomes an integral part of the completed vehicle,
designed for human habitation for recreational or emergency
occupancy.
   (f) (1) Except as provided in paragraph (2), no person shall sell,
either at wholesale or retail, lease, or transfer a motor vehicle
transferred by a buyer or lessee to a manufacturer pursuant to
paragraph (2) of subdivision (d) of Section 1793.2 or a similar
statute of any other state, unless the nature of the nonconformity
experienced by the original buyer or lessee is clearly and
conspicuously disclosed to the prospective buyer, lessee, or
transferee, the nonconformity is corrected, and the manufacturer
warrants to the new buyer, lessee, or transferee in writing for a
period of one year that the motor vehicle is free of that
nonconformity.
   (2) Except for the requirement that the nature of the
nonconformity be disclosed to the transferee, paragraph (1) does not
apply to the transfer of a motor vehicle to an educational
institution if the purpose of the transfer is to make the motor
vehicle available for use in automotive repair courses.
